You’ve basically hit the nail on the head. It’s pretty simple to argue based on information theory / statistical mechanics that a machine that runs the simulation has to support at least as many states as the thing its simulating, so a machine that simulates a universe as complex as its host would take up the entire host universe.
It’s a fun idea but ultimately it’s not at all scientific and shouldn’t be taken seriously.
The first set of numbers is likely AM and the second set of numbers is likely PM